courtesy Aker Arctic

A conservative Canadian government is contemplating getting its shipyards working again by having them potentially built multi-purpose supply ships for the Arctic, the Canadian Press has reported

Tens of billions of Canadian dollars could soon be spent helping Canadian shipyards build the military supply ships for the Arctic. To avoid boom-and-bust economics for the yards, it is expected that building oil and gas supply ships and icebreakers could take over once coastal patrol boats, arctic supply ships and new frigates are beyond the drawing board.

In recent years, rare infusions of capital for shipbuilding have come from Norwegian yard interests. Norwegians recently bought up Davies Yards in Quebec to secure capacity their own expansive programmes if ship-building and crane-building.

"There (would be) enough work for the Canadian shipyards on both coasts and in Quebec to keep people employed, and to keep that sector of the economy going full-tilt," Canadian Defence Minister Peter MacKay told the CP.

For bigger projects, Canadian yards are known to need to new heavy crane capacity. And government has yet to decide which aspects of shipbuilding — hull welds, deck construction, final assembly or all three — would be assigned money.

Decisions on a new direction for once-buoyant Canadian shipyards could come with an industry-government summit early in the new year, the Canadian new agency reported.

Norwegian yards recently won billions in state loan guarantees to ensure financing for their current new-build ship orders held together until ships are built. Yard interests from Western Norway already dominate a world offshore fleet seen doubling in size over the next five years.

Tags: Davies Yards